SpringWorks Therapeutics (SWTX) saw its stock surge 34% on Monday following reports that German pharmaceutical giant Merck KGaA is in advanced talks to acquire the company.
According to Reuters, multiple sources familiar with the discussions suggest that a deal could be finalized in the coming weeks. Merck later confirmed that negotiations were at an “advanced” stage.
SpringWorks is focused on developing treatments for various cancers and tumors. Merck KGaA, which brands itself as the world’s oldest pharmaceutical and chemical company, is distinct from the U.S.-based Merck & Co.
Despite the rally in SpringWorks shares—closing at their highest level since April 2022—Merck KGaA’s German-listed stock fell about 3% during the session. The company has previously indicated its willingness to pursue acquisitions, leveraging cash reserves built up during the pandemic amid rising demand for its products.
A SpringWorks spokesperson declined to comment, while Merck KGaA has yet to issue an official response to the report.
